Meanwhile, the CBOE Volatility Index, a measure of investor anxiety known as the Vix or “fear index”, leapt more than 11pc.

Vix index spikes. Source: Bloomberg

The oil price has spiked on the news.

Oil price jumps Source: Bloomberg

Investors have been concerned about the potential fall-out to any escalation between the two countries, though recent signs of easing tensions had lifted equities throughout the week.

"If the reports are true that there is an exchange of arms between Russia and Ukraine, that is a setback in the recent calm. It is hard to know how serious this is, but any sustained upturn in violence could lead to a short-term setback," said Jim McDonald, chief investment strategist at Chicago-based Northern Trust Asset Management.

"Still, so far it has not paid to get too defensive."

The five most important reasons to hold gold

The Telegraph Investor

Editor's comment:

Priced to be great value for new investors and those with large portfolios.